capital markets day 2017 - kuehne + nagel: … markets day 2017 – wednesday, september 20, 2017...

Wednesday,September 20, 2017

London

CAPITAL MARKETS DAY 2017

Time Presentation Room Speaker

09.00 ARRIVAL / REGISTRATION

09.30 09.30 – 10.0010.00 – 10.3010.30 – 10.45

WELCOME KN+NEXTGENFINANCE UPDATE Q & A

Detlef Trefzger, CEO Markus Blanka-Graff, CFO

10.45 – 11.00 COFFEE BREAK

11.00 – 11.45 GSK / Q & A Rob Coyle, VP, NA Pharma Supply Chain & Global Logistics

11.45 – 12.30 MAERSK / Q&A Soren Skou, CEO

12.30 – 13.30 LUNCH

13.30 – 14.15 SEAFREIGHT CONTRACT LOGISTICSTECHNOLOGY & DATA

Room ARoom BRoom C

Otto Schacht, Executive Vice PresidentGianfranco Sgro, Executive Vice PresidentMartin Kolbe, CIO

14.15 – 14.30 COFFEE BREAK

14.30 – 15.15 AIRFREIGHTOVERLANDTECHNOLOGY & DATA

Room ARoom BRoom C

Yngve Ruud, Executive Vice PresidentStefan Paul, Executive Vice PresidentMartin Kolbe, CIO

15.15 – 16.15 ONE-ON-ONE Management / IR

Capital Markets Day 2017 – Wednesday, September 20, 2017

AGENDA

Detlef Trefzger, CEO Kuehne + Nagel International AGSeptember 20, 2017London, UK

Capital Markets Day 2017

Leading the Transformation

© Kuehne + Nagel | Capital Markets Day1 20/09/17

© Kuehne + Nagel | Capital Markets Day2

A fast paced world driven by consumers …

§ The new normal of global trade

§ Dissolving line between B2C and B2B

§ Technology drives data

§ Environment and Sustainability

20/09/17


New dynamics will continue to fuel strong growth in logistics

3

4

5

6

0

200

400

600

Sea Air Road CL

Transport and Logistics Market

Source: Ti, IMF, BCG, KN

Global GDP CAGR

%

§ Relative market size 2016§ CAGR 2016-2020

6

5

4

3

New marketplayerseCommerce

%

20/09/17


New market players

Shift in trade patterns

eCommerce

New dynamics will continue to fuel strong growth in logistics

2

3

4

5

6

7

8

0

200

400

600

800

1000

Asia Pacific Europe North America

ROW

Global GDP CAGR

8

4

2

%Transport and Logistics Market

%

-

-

-

-

-

Source: Ti, IMF, BCG, KN§ Relative market size 2016§ CAGR 2016-2020

3

5

6 -

7

20/09/17


Best positioned to leadthis transformation§ “Focus + Excellence” successfully deployed

§ Strong industry and customer expertise

§ Unique global coverage across all modes of transport and logistics

§ Unmatched operational execution

20/09/17


Create superior value through customer excellence and expand into new services

Customer

KN Chain portfolio Value chain

Customer Excellence

20/09/17

Active tomorrow

Leveraging our strengths to extend from supply chain to value chain services


End consumer

Active today

Assets and Commitments

Expertise and Technology

value chaingoods, information, cash

Customerproduct development

20/09/17


The game changer for productivity improvements, user experience and customer excellence

Technology

Manage complexityeTouch

myKNEase of doing business

20/09/17

© Kuehne + Nagel | Capital Markets Day

eWarder

People’s businessLeadership

New specialists

10

Transformation is driven by our people at all levels

People

20/09/17

Our ambition


Core business

Acquisitions

Create substantial GP growth

Grow double the market

Footprint. Synergies. Know-how

New value chain services

20/09/17


Leading the transformation

eTouchmyKN

People’sbusinessAcquisitions

Customer Excellence

20/09/17

13

Capital Markets Day 2017

Leading the Transformation

Markus Blanka-Graff, CFO Kuehne + Nagel International AGSeptember 20, 2017London, UK

© Kuehne + Nagel | Capital Markets Day20/09/17

14

Performance of the Kuehne + Nagel Group 2014- 2016

In CHF million

© Kuehne + Nagel | Capital Markets Day20/09/17 © Kuehne + Nagel | Capital Markets Day14

Gross profit+262+4.2%

EBIT+99

+12.1%

EBIT in % of gross profit13%- 14%

EBIT in % of net turnover

4.7%- 5.6%

15

Performance of the Business Units 2014- 2016

In CHF million


SeafreightEBIT 445

+12%CR 28- 36%

CR Conversion rate

AirfreightEBIT 298

+25%CR 25- 31%

Overland

EBIT 28CR 0- 6%

ContractLogisticsEBIT 147CR 3- 6%

16

Balance Sheet and Working Capital – KPIs

Balance Sheet 31.12.2016

Equity ratio 34.2%

Trade receivables 2,605

Cash and cash equivalents, net 837

Balance sheet total 6,331

In CHF million

Working Capital 2014- 2016

Working Capital intensity 3.0- 3.1%

DSO 44.4- 46.6

DPO 54.9- 60.2

DSO/DPO spread 10.5- 13.6


17

Shareholder value 2014- 2017

In CHF


Dividend paid

>2bn

Market capitalisation

1421bn

Return on equity

+30%

Share price

+49%

18

§ The commodity part of the current business is structurally under margin pressure

§ The service business offers attractive financials

§ Digitalisation opens new business activities

Facing industry realities


19

§ Strong organic growth to leverage efficiency

§ New solutions to safeguard and expand margins in service business

§ M+A is an accelerator for knowledge acquisition and service development

§ M+A is a key element to capitalise on operational excellence through synergies



20

GP/Unit YOY 2016/2017 change in %Volume growth at twice the market rate 2016/2017

Source: Kepler Cheuvreux

For a major market player, price elasticity of demand is a factor

Mechanics of growth


21

Focus on cost leadership in commodity andvalue creation in service business

KN margin drivers

KN GP/TEU and Shanghai Containerized Freight Index in CHF§ Stable Gross Profit/Unit

§ Margin largely independentof rate levels

§ Margin is earned through supply and value chainservices

Source: Bloomberg, Shanghai Export Containerized Freight index


22

Commodity business and service businessAn illustrative example

eTouch volume potential 20 – 40% © Kuehne + Nagel | Capital Markets Day20/09/17

23

End consumer

Active today

Assets and Commitments

Expertise and Technology

value chaingoods, information, cash

Customerproduct development

Expansion of service offering

© Kuehne + Nagel | Capital Markets Day

Active tomorrow

20/09/17

24

Adam Smith Awards

§ SWIFT solution 2016

§ Supply Chain Finance 2017

Expansion of finance solutions

§ Supply Chain Finance solution in collaboration with Tradeshift and Citibank for a fully integrated, one channel and seamless invoice-to-cash platform

§ FinanceChain management of information and cash flows along the value chain without tapping into our Balance Sheet


Operational excellence Cost control

Customer focus

Organic growth

§ Cost control to ascertain leveragebenefits

§ Digitisation as game changer for productivity improvements

§ Investing in new opportunities connected to value expansion

§ Acquisitions as an accelerator for our strategy

Ambition Group conversion rate:

> 16%

25 © Kuehne + Nagel | Capital Markets Day20/09/17

26



Markus Blanka-Graff Andrea KobiCFO Investor [email protected] [email protected]: +41 (0)44 7869 644 Tel: +41 (0)44 7869 561

DisclaimerInvesting in the shares of Kuehne + Nagel International AG involves risks.

Prospective investors are strongly requested to consult their investment advisors and tax advisors prior to investing in shares of Kuehne + Nagel International AG.

This document contains forward-looking statements which involve risks and uncertainties. These statements may be identified by such words as “may”, “plans”, “expects”, “believes” and similar expressions, or by their context. These statements are made on the basis of current knowledge and assumptions. Various factors could cause actual future results, performance or events to differ materially from those described in these statements. No obligation is assumed to update any forward-looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments.

The information contained in this document has not been independently verified and no representation or warranty, express or implied, is made to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. The information in this presentation is subject to change without notice, it may be incomplete or condensed, and it may not contain all material information concerning the Kuehne + Nagel Group. None of Kuehne + Nagel International AG or their respective affiliates shall have any liability whatsoever for any loss whatsoever arising from any use of this document, or otherwise arising in connection with this document.

This presentation is not an offer of securities for sale in the United States. The offer and sale of Kuehne + Nagel International AG securities has not been, and will not be registered under the United States Securities Act of 1933, as amended. Kuehne + Nagel International AG securities may not be offered or sold to anyone in the United States absent such registration, except pursuant to an appropriate exemption from registration. There will be no public offering of Kuehne + Nagel International AG securities in the United States.

SourcesSlide 3 and 4:Transport Intelligence, International Monetary Fund, Boston Consulting Group, Kuehne+Nagel, 18.09.2017Slide 20 both charts: Q&A Report Kuehne + Nagel, June 9, 2017, page 13, Kepler Cheuvreux Equity ResearchSlide 21 chart: Bloomberg, Shanghai Export Containerized Freight index, SHSPSCFI Index, per quarter, in CHF, 15.09.2017

Contact

27 © Kuehne + Nagel | Capital Markets Day20/09/17

Kuehne + Nagel International AGKuehne + Nagel HouseP.O. Box 67CH-8834 SchindellegiTelephone +41 (0) 44 786 95 11Fax +41 (0) 44 786 95 95www.kuehne-nagel.com

capital markets day 2017 - kuehne + nagel: … markets day 2017 – wednesday, september 20, 2017...

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